Cabot to open $2b masterbatch facility

Dubai: Cabot Corporation, Boston-based global chemicals and materials company will supply black masterbatch from its new $2 billion (Dh7.34 billion) facility in the Jebel Ali Free Zone to Middle East and Asia-Pacific and European infrastructure related industries, a top official said.

The facility will produce 25,000 metric tonnes of the compound in its first year of production, which will later be ramped up to 75,000 metric tonnes annually.

Masterbatch is an ingredient used to colour the raw materials used in making plastics.

"Our main markets will be the Middle East, where we believe infrastructure has continued demand," Patrick Prevost, president and chief executive of Cabot Corporation, told Gulf News.

"This facility will be complementary to our world-wide position," he said. The company has similar facilities in Belgium and Hong Kong.

Although the company saw demand drop by 9 per cent last year during the global economic downturn, it has seen a significant recovery. "We are hopeful about further development in the Gulf region," Provost said, adding that exports to Asia Pacific, especially China, will be significant.

The facility is in the last phase of start-up and will be operational in August.

Laboratories, administration offices, production and packaging are all located in the building.

The Dubai plant allows Cabot to better meet increasing demand for masterbatch in the Middle East, Europe and the Asia Pacific.

"This new move not only reflects the confidence the company has in Dubai and Jafza but also proves that Jafza is still one of the most favoured investment destinations for international companies looking to base themselves in the region," senior vice-president of global sales at Jafza, Adil Al Zarouni, said.

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